LRT.AX
use only
MONTHLY UPDATE
Lowell Resources Funds Management Ltd. ABN 36 006 769 982 AFSL 345674
December 2021
December 2021 Performance Summary:
Lowell Resources Fund (ASX: LRT)
The Lowell Resources Fund net asset value ('NAV') at the end of December 2021 was approximately $57.2m, compared to $57.1 million at the end of November.
The NAV per unit finished the month of December at $1.948/unit (vs $1.948/unit at 30 November 2021). The traded unit price of the ASX listed LRT units at month end was $1.75/unit. A further 54,789 units were issued as part of the DRP during the month (required as a result of some unit holder bank account details for cash distributions for year ended 30 June 2021).
For personal
FUND OVERVIEW
Investment
Lowell Resources Funds
Manager
Management Limited
Managed since
6 February 2004
ASX code
LRT
Income
Annual
distribution
FUND SNAPSHOT 31 December 2021
NAV per unit
$1.948
No. of Units on issue
29,354,614
Market Price (ASX)
$1.75 / unit
Net Asset Value
$57.2m
August 2021 Distribution
$0.15/unit
Market Capitalisation
$51.4m
Lowell Resources Fund NAV vs
3.50
ASX Junior Resources Index
3.25
(rebased to 1 at December 2019)
3.00
2.75
2.50
LRT
2.25
NAV
2.00
1.75
1.50
1.25
1.00
0.75
For personal use only
MONTHLY UPDATE
December 2021
Lowell Resources Funds Management Ltd. LRT
Fund Investment Actions - December 2021
In precious metals, the Fund boosted its holdings in ASX listed Australia-focused explorers Genesis Minerals, Great Northern Mining and Kingwest Resources.
In base metals, the Fund completed its very profitable exit from Centaurus Metals, as the company advances its feasibility studies on the Jaguar nickel sulphide project in Brazil.
In December, the Fund added to its position in ADX Energy, which is developing both conventional hydrocarbons as well as hydrogen-focused projects in Austria.
LRF COMMODITY EXPOSURE 31 DECEMBER
2021
Bauxite
Uranium Helium
0%
1%
3%
Mineral Sands
Fertilisers
Mining Services
1%
0%
Cash
3%
7%
Nickel
7%
Battery
4%
Gold & PGM
O&G50% 8%
Base Metals
14%
Silver REE
1% 1%
2
MONTHLY UPDATE
Lowell Resources Funds Management Ltd. LRT
only
Fund Top Holdings
Predictive Discovery (PDI.ASX) continued to
extend the depth of its 3.6Moz NE Bankan gold
deposit in Guinea, west Africa, with intercepts such
as 34m at 5.5 g/t Au from 441m. It also released
aircore drill results from new prospects including
use
36m at 1.9g/t Au at the 800W zone and 22m at
12.1g/t Au at the SW Bankan area.
Musgrave Minerals (MGV.ASX) announced new
shallow high grade lodes at its 100% held Cue
project in WA, including 15m at 111g/t Au. High
grades were also returned from the Big Sky deposit
including 4m at 20g/t Au.
personal
De Grey Mining (DEG.ASX) announced extension
of the Diucon deposit to 550m depth, and high
grades at the Eagle deposit (53m at 5.8 g/t Au) at
the 9.0Moz Mallina gold project.
Azure Minerals (AZS.ASX) announced a new
discovery at the Skyline prospect at its 60% owned
Andover project in the Pilbara, WA. Assays are
awaited from multiple intersections of disseminated
Ni-Cu sulphides. At the VC-07 East deposit
mineralization was extended to at least 550m
depth.
Blue Star Helium (BNL.ASX) announced it had
received the long awaited approval for a permit to
drill the Enterprise helium well in Colorado.
Significant gas columns have been interpreted in
water wells at the Enterprise and Voyager
prospects, with up to 8.8% helium content
calculated.
For
Fund Top Performer
Golden Rim Resources (GMR.ASX) share price
rose 41% in December. GMR is completing
resource drilling at the Kada project in Guinea, west
Africa, where the company is earning a 75%
interest. Best results include 96m at 3.3 g/t Au. An
initial resource is expected in Q1 2022.
December 2021
LRF Portfolio Value by Project Stage
31 December 2021
70%
60%
50%
40%
30%
20%
10%
0%
Company
Commodity
% of Gross
Investments
Cash
Cash
6.7%
Predictive
Gold
8.6%
Discovery
Genesis Minerals
Gold
6.9%
Musgrave
Gold
6.6%
Minerals
De Grey
Gold
4.9%
Mining
Azure Minerals
Nickel
3.9%
Caravel
Copper
3.5%
Talon Metals
Nickel
3.3%
Blue Star Helium
Helium
2.8%
South Harz
Potash
2.5%
Potash
Red Dirt Metals
Lithium
2.3%
3
MONTHLY UPDATE
December 2021
Lowell Resources Funds Management Ltd. LRT
only
Performance Comparison - December
2021
Over the past 12 months, the Lowell Resources Fund's change in underlying net asset value per unit
(inclusive of distributions and after fees and expenses) was 36.4%, and 85.1% pa over two years. The
Fund has outperformed the benchmark S&P/ASX Small Resources Index (XSRD) and the ASX 200
use
Index over one, two, five and ten years.
Total Portfolio
LRT Change in
S&P/ASX Small
ASX 200 Index TR
Performance to 30
NAV per unit incl
Resources Index
December 2021
distributions
(XSRD)
12 months
36.4%
+27.5%
17.2%
2 years p.a.
85.1% pa
+24.3% pa
9.0% pa
personal
5 years p.a.
23.7% pa
+13.3% pa
9.8% pa
10 years p.a.
15.4% pa
-2.0% pa
10.8% pa
The LRT.ASX traded unit price at the end of December was $1.75/unit, compared to $1.80/unit at the end
of November.
Market Notes
• U.S. inflation hit a 39 year high of 6.8% in November, on the same day the S&P 500 equity index
hit its 67th all-time high of 2021. The US Federal Reserve announced it would end its asset-
buying program earlier, and signaled it favours raising interest rates in 2022 at a faster pace than
expected. Elsewhere, the Bank of England raised rates to 0.25% from historic lows of 0.10% amid
reports of improving labour market and strong inflation. Early in December, the US jobless claims
dropped to the lowest level since 1969.
For
• Supply chain bottlenecks continued to impact markets. As at 13 December, a record 101 container
ships were queueing off Los Angeles and Long Beach ports.
•
US President Joe Biden still requires the support of key Democrat Senator Joe Manchin to pass
his US$1.7tn "Build Back Better" stimulus plan. Manchin has refused to vote for the spending plan
citing the risk of cost blow outs and its effect on inflation.
• US$ gold finished the 2021 calendar year at US$1,820/oz, up 2.5% on the month, but down from
US$1,890/oz over the year.
• Real US interest rates dropped back below negative 1.0%, before beginning to rise in the new
year.
4
For personal use only
MONTHLY UPDATE
December 2021
Lowell Resources Funds Management Ltd. LRT
5
This is an excerpt of the original content. To continue reading it, access the original document here.
Disclaimer
Lowell Resources Fund published this content on 13 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 January 2022 03:40:08 UTC.